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Most financial institutions, including mortgage companies, banks, savings and unsecured loans and finance companies, offer personal unsecured loans. Often, they are relatively difficult to get. But be careful when taking on personal unsecured loans and other unsecured debt. When you buy a house by taking out a mortgage, your net worth basically remains the same, since the house you now own offsets (unsecured) the mortgage liability. Personal unsecured loans, like revolving credit card debts, are wealth destroyers; your net worth takes an immediate hit. For example, one prominent finance company offers personal loans up to $10,000 with 24-hour approval.

They'll even take your application over the telephone. Not so user-friendly is the 25 percent annual interest rate they charge -- even higher than the rate on most credit cards. A better choice is often an equity unsecured loan against your home. The rates for home equity loans are much lower, and the interest is normally tax-deductible. If you must take out a personal secured loan, start with your bank or S&L, where you've already got a relationship established -- look for rates of around 11 or 12 percent. Apply over the phone and you may even get a decision within 10 or 15 minutes. Financial institutions can access your credit report online even as you are answering questions for the application.

Unsecured personal loans, are ideal for the homeowner who wishes to borrow a large amount of money over a longer repayment term. An unsecured loan is unsecured on domestic, residential property. For property owners, this is often the most efficient way of raising a loan, as the lender will either be more flexible with the application details of the client, or offer lower rates, because they have a property as security. They enable you to release equity in your home, without you having to go through the trauma and expense of selling. These unsecured loans are ideal for debt consolidation and home improvements. This will give you peace of mind, that should you be unable to work due to sickness or accident, your repayments would be taken care of for you. Although this is not compulsory, we would always recommend that you consider this option thoroughly. When you apply for a unsecured personal loan you will be provided with a written credit agreement, this will document all of the terms and conditions of the secured loan and should be read thoroughly, before you sign. This will form the basis of a legally binding contract between yourself and your chosen Lender.